IIFM holds its 35th Board of Directors Meeting in Bahrain
Monday, 5th December 2016 – Bahrain: In its 35th meeting held in Manama, the Board of Directors of the International Islamic Financial Market (IIFM) reviewed in detail the plan to press forward IIFM’s core initiatives of standardization of Islamic financial contracts and products templates.
Mr. Khalid Hamad Abdul Rahman Hamad, Chairman of IIFM said, “To take the industry to a higher level of development and standardization, IIFM is widening its initiatives for harmonizing industry practices and the means to achieve these objectives were discussed at the meeting”.
“The importance of standardization in a financial system cannot be overemphasized and we can certainly see the benefits achieved in the conventional financial system. In Islamic finance the importance and true benefit of standardization is yet to achieve its due necessity and importance. The challenge here is the high level of support and utilization by all stakeholders as enjoyed by the conventional standard-setters”, said Mr. Khalid Hamad.
This year marked the tenth anniversary of successful collaboration between IIFM and the International Swaps and Derivatives Association (ISDA), which has resulted in the publication of a number of Islamic hedging standards.
An announcement on publication of Malaysian Law Legal Opinion on enforceability of close-out netting under the ISDA/IIFM Tahawwut Master Agreement was made on the sidelines of the board meeting.
IIFM is also addressing the challenge of new regulations being imposed by the European and North American regulators on cleared and un-cleared transactions where certain Islamic transactions will be impacted. IIFM and ISDA are in an advance stage of developing an Islamic Credit Support documentation to handle collateral and margin requirements.
During 2017, IIFM will be working with the industry to develop standards and guidelines relating to Sukuk for enhancement of market practices, to provide time and cost efficiency, Shari’ah harmonization and other benefits.
Another key segment of the industry where IIFM along with the market is currently working on is Islamic trade finance where risk participation documentation for unfunded and funded transactions are being developed to bring much needed clarity, innovation and unification of business practices.
Mr. Ijlal Ahmed Alvi, Chief Executive of IIFM thanked the IIFM Board of Directors for their vision and direction which has established IIFM as a key standard-setting body for Islamic finance.